Originally Posted by
tuna_hp
People who you know are traveling a lot, and who you know are spending a premium to stay loyal to a single airline and reach elite status, also seem like the sort of people who are more likely to be willing to spend a premium to guaranty a seat up in business or first class.
The 1st class seat takes up twice the floorspace in the plane, there's a higher level of service in the cabin, plus it comes with extras: 1st class check-in, included checked bags, priority baggage, priority security, priority boarding, lounge access, etc.
But for a United 1K, they already get all those extras regardless of what ticket they're flying on, PLUS they have an ~80% chance of getting a free upgrade to 1st, PLUS they can put in for a companion to be upgraded with them.
Wouldn't airlines be able to increase their overall revenue if they gave their highest elite frequent flyers enough of a discount on 1st class to make it worth their while? Considering that many of these people are the rare sort who would be willing to pay a premium for premium seats anyway?
Welcome to FT!
A 1K does not get free lounge access on a domestic flight. When I was a 1K last year, I was never willing to pay for F seats. I am not sure where you come up " ..an ~80% chance of getting a free upgrade to 1st". Where did you get these numbers? Your chances of being upgraded depend on your fare class, routing, time of check in, etc.
I know last year, on elite heavy routes, I did not receive UDU ~80% of the time. YMMV.